ACE Limited (NYSE:ACE) today reported net income for the fourth quarter ended December 31, 2008, of $0.06 per share, compared with $1.69 per share for the same quarter last year. Income excluding net realized gains (losses) for the fourth quarter was $1.87 per share, compared with $2.05 per share for the same quarter of last year. The quarter was marked by financial market volatility in both the credit and equity markets, which impacted net income and book value. The net realized and unrealized loss after tax was $1.2 billion for the quarter due to the mark-to-market pricing impact caused by continued widening of credit spreads and the decline in global equity markets. Book value decreased $910 million for the quarter including a net foreign currency translation loss of $310 million. Annualized return on average equity was 16.7%. The property and casualty (P&C) combined ratio was 86.9%.
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